Personal Income Tax Rates and Thresholds

Australia has a progressive tax system – that is your tax rate increases as your taxable income increases. This is achieved by creating tax brackets, and applying lower tax rates to the lower tax brackets. Even if your income is in the highest tax bracket, you do not pay at the highest rate of tax on all of your income. 

Most residents are entitled to the tax free threshold of $18,200. Each bracket of your taxable income is then taxed at the appropriate rate for that bracket.

The tax rates for residents of Australia for the 2024/25 and the 2025/26 years are shown in the table below. As non-residents and working holiday makers are taxed differently, we've also included tables showing the tax rates for foreign residents and for working holiday makers.
 

Resident Tax Rates for the 2024/25 and 2025/26 Income Tax Years

The $18,200 tax-free threshold is reduced if you have been a resident of Australia for tax purposes for fewer than 12 months. In addition to income tax, most resident taxpayers will be liable to pay Medicare Levy at a rate of 2% of their taxable income. High-income resident taxpayers who do not have adequate private health insurance may be subject to an additional 1% to 1.5% Medicare Levy surcharge.

The lowest tax rate will reduce from 16% to 15% for the 2026/27 year and then to 14% from the 2027/28 year onwards.

Non-Resident Tax Rates for the 2024/25 Years Onwards

Non-residents do not pay the medicare levy.

Working Holiday Maker Tax Rates for the 2024/25 Years Onwards

Taxpayers who are on a Working Holiday Maker Visa are taxed at special rates. 

These rates apply to all working holiday makers (both resident and non-residents) other than those classed as residents who are from countries with a non-discrimination clause in their doubletax agreement with Australia, such as Chile, Finland, Germany, Israel, Japan, Norway, Turkey and the United Kingdom.

Updated June 2025